Mar 16, 2023

Crypto Acts as Safe Haven Amid U.S. Banking Crisis

As the banking crisis in the United States continues to take its toll, Cathie Wood, CEO of asset management firm ARK Invest, has spoken out against the Federal Reserve’s policy failure. She blamed the recent bankruptcy of Silicon Valley Bank (SVB), Signature and others on the Fed’s policy and argued that the crisis was not caused by cryptocurrency.

Wood’s comments come as the prices of Bitcoin (BTC) and Ether (ETH) reach new highs amid the banking crisis. In a Twitter thread on March 16, Wood criticized the Fed’s inability to avert bank runs despite all the signs being there. She argued that the Fed policy was the primary culprit for the ongoing banking crisis due to a venture capital funding drought.

Pointing toward the asset-to-liability mismatch, which, although typical in most circumstances for banks, was untenable in the current scenario, with deposits leaving the banking system for the first time since the 1930s. Securities earnings for banks were only 1–2% against deposits paying 3–5%, which eventually became untenable as deposits started leaving the system. Like SVB, some banks were forced to sell held-to-maturity securities, recognizing losses that depleted their equity accounts.

Wood also reminded everyone that the ongoing crisis wasn’t forced by cryptocurrency, with the ecosystem under heavy scrutiny since FTX’s downfall, leading to a severe regulatory crackdown. She argued that regulators are using crypto as a scapegoat for their own lapses in oversight of traditional banking.

Wood has long been a known crypto proponent, often reflected in her company’s investment in emerging markets — especially crypto. She noted that the current banking crisis would not have been possible in the decentralized, transparent, auditable and overcollateralized crypto asset ecosystem. She projected crypto as a solution to the central points of failure, the opacity and the regulatory mistakes in the traditional financial system.

As the scapegoat for policy mistakes, Wood believes that crypto will move offshore, depriving the U.S. of one of the most important innovations in history. This could have a profound effect on the NFT (Non-Fungible Token) space, as well as the web3 space.

As the demand for NFTs continues to rise, the need for effective NFT marketing is also increasing. Companies are now turning to specialized NFT marketing agencies to help them promote their NFTs and sell more of them. These agencies specialize in Twitter NFT marketing, which can be a powerful tool for getting the word out about an NFT and driving sales.

For those who are looking to get into the NFT space, it is important to understand the basics of NFT marketing and how to best promote their NFTs. A good NFT marketing agency can help them create a successful marketing plan and ensure that their NFTs reach the right audience. They can also help them create effective strategies for selling their NFTs and reaching their goals.

The current banking crisis is a reminder of the importance of decentralized, transparent and auditable financial systems. With the crypto space increasingly becoming a safe haven for investors, it is important to understand the power of NFT marketing and the potential it has to revolutionize the web3 space.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.